Agent concerns: Abacus survey
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The growth in passenger numbers, airline expansions, new infrastructure developments and consumer-friendly initiatives will continue to alter the supplier landscape for travel agents. They are also creating an intensely competitive environment where airlines, hotels, travel agents and other travel providers are all fighting for a bigger share of the market.
Relationship with suppliers and the squeeze on their profit margins are major concerns for travel agents this year, according to Abacus International’s Travel Agent Insights Survey.
Some 81% of the 1,600 agents surveyed were looking to work with different suppliers where possible in the coming year.
A quarter of agents also cited the squeeze on their profit margins as a major worry for 2008, due to the increased pressure from suppliers, as well as competitors.
Another major concern for travel agents for some years now is the role of the internet, especially in direct-to-consumer marketing from hotels and airlines. Presenting the findings at a media session, Don Birch, Abacus President and CEO, said airlines and hotels in Asia were learning not to put their eggs in one cyber-basket.
“Like LCCs, hotels are beginning to admit they cannot stay outside the tent on their own. The customer/travel agent relationship is still vital in the Asian travel market and GDS and travel agents will remain an important method of distribution for all industry players,” said Birch.
However, he warned that to catch the wave of growth that online travel promises, travel agents must stay informed on new technologies.
Citing figures from EyeforTravel showed that offline sales still made up the lion’s almost 90% of travel sales in Asia.
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